I have the Top Gun listed for sale. I recieved a call from a person in California who proceded to explain how their donation program works. It took him a few weeks to get some hard #'s together, What he gave me may have some merit. He is putting together a package with all the details in writing. I will turn it over to my tax accountant for evaluation.
Here's the deal (these are not the exacting #'s). Say avg market price is $135m. The high retail book on the boat is $200m. They give you $75 m cash and the necessary paperwork with certified evaluation to write off the difference from the $200m or $125m. Buck book shows the average unit selling for $135m.
If you factor the Fed and State dedcutions you gain $135m. Naturally the higher income bracket you have makes this more attractive but also feasible.
Does anybody on the board have any experience with this?
Intrepid ~ Boston Whaler ~ Kayaks ~ Windsurfers ~ Assorted Tub Toys
Re: They asked me to DONATE my boat....
I would like to understand this a little better to. I bought a boat from someone who was just about to do this and offered him about 35% less than what he was asking, so understanding when this does and doesn't make sense from a sellers perspective would be interesting. Thanks for posting it.
That's how I sold the Formula (although in a much lower dollars range). I'll know for sure how it worked out when I do next years taxes. The biggest advantage for me was I just didn't have a place at the house to keep two boats (dock was already full), and, storage costs aside, just having it sit there unused, unmaintained (it was too far for me to keep a weekly eye on it, wash it, air it out every few days, etc.) and waiting to sell was murder on both me and the boat.
Just be sure you are dealing with a competent legitimate company. There are many people who talk a good game. I would make it a point to talk with MRE (They are on the OSO links page) and see what numbers they give. I have yet to hear anything bad about there program. I have, however, heard stories about others trying to do the same type of deal.
These are the pro's:
1. Instant sale (Meaning instant money)
2. No Sea trial or dealing with blow hards hat will waste your time for a boat ride.
3. Tax credit.
4. Learning this system and getting acquainted with the individually at the donation houses may help you when it comes time to boyer next boat.
Good luck,
And deal with professionals, not those learning how to make a buck!
Just be sure you are dealing with a competent legitimate company. There are many people who talk a good game. I would make it a point to talk with MRE (They are on the OSO links page) and see what numbers they give.
I asked the kids in our hospital if they would like to ride on a Top Gun, and they said h*ll yes. So if you wanted to donate it to us, we can give you a tax deduction and set up an endowment for small PFDs and fuel. (We are a 501-c3)
Maybe we could put booster bolsters in and a wheelchair rack.
Then I can boat even MORE during the work week than I already do, and you will get a tax deduction. Our hospital logo is seafoam and red. Will that match the color scheme on your TG?
Plus we could have glassdave paint
"Pediatric Top Gun Made Possible By Expresscat39"
Maybe OSO would sponsor T-Shirts for the kids that say:
"I feel much better riding in a Top Gun."
I picked up a great deal on a Formula from MRE also Jeffrey is great to work with and their program seems to be all on the up and up. Whatever you do make sure you get as much paperwork as you can, if you ever need it, you will REALLY need it.
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Chesapeake Bay Powerboat Association www.cbpba.com
I spoke with a few tax attorneys as well as an accountant who cautioned me from doing this because the actual retail sales value is not near close to what you get the right-off for. I was told that if you are audited they will look back at realistic sales numbers for you boat during the time that the transaction took place and tax you for the difference plus penalty. It's up to you but you won't truly know if you are safe until 5 years later. Just a thought.
Call and talk to Jeff @ MRE, they always encourage you to speak with your accountant or tax layer to make sure the deal is right for you, this way you don't feel like your stepping into some hidden agenda.
Jeffrey has a reputation on this board to protect, so I don't think he would ever have his people pull something shady, especially knowing how big the industry is, and how small the World we live in is
Honestly, I think doing this works for some and not others...if you own your own business, then this avenue may be a difficult one to take, most business owners really need the true write off's, and usually want to stay under the radar of the IRS and depending on how much you donate as a loss will depend if you pop up above that line most accountants tell you not to cross.
Talk to them, if you are having trouble selling your boat, they might be able to offer you a solution to get rid of it, as well as get you the $$ your asking...hey what do you have to lose, review the deal, talk to your accountant...the year is almost over, so you take a loss for now and come April/May you get the rest of your asking price and maybe them some, since you won't be paying for advertising or storage any longer
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Jeffrey is great to work with and their program seems to be all on the up and up. Whatever you do make sure you get as much paperwork as you can, if you ever need it, you will REALLY need it.
